Benefits And Disadvantages Of The C Corporation

1675 WordsSep 8, 20157 Pages
When starting a business, you have many decisions to make; who to hire, where to locate, how to get customers and where to start. But, one of the most important and overlooked decisions is how to protect yourself. Going into business involves risk, but certain risks can be avoided or, at least, minimized. One of the easiest way to protect yourself is to choose the right business entity. There are four basic choices for forming a business. These options are sole proprietorship, partnership, corporation or limited liability companies. An overview of these options is provided below. The C Corporation has many advantages and disadvantages. First advantage is that is has limited liability. The second advantage is that it has the ability to general capitol very quickly and easily. Another advantage is that it receives the corporate tax treatment. The final advantage is that it can attract potential employees very easily. The first disadvantage is that it takes a lot of time and money to run and start a C Corporation. The second is that the company and owners are taxed separated. So with the C Corporation you have double taxation. The final disadvantage is that there is additional paperwork to start and run a C Corporation. Those are the advantages and disadvantages of a C Corporation. The S corporation has many advantages and disadvantages. The first advantage is that you have taxing savings compared to a C Corporation. The second advantage is that it receives a business expense

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